The French food group exits its 25-year investment after failed takeover bids, selling 3.45m shares in a secondary offering.
Danone will sell its 22.7% stake in Lifeway Foods through a secondary public offering of 3,454,756 shares priced at $19.50 each. The deal, set to close 19 May, ends a protracted investment that began in 1999 and included two rejected takeover offers in 2024 at $25 and $27 per share.
Lifeway will not receive proceeds from the sale but has agreed to repurchase $5m worth of shares at the same $19.50 price, conditional on the offering’s completion. Danone cited a strategic shift away from pursuing the acquisition after extensive discussions.
The offering follows Lifeway’s rejection of Danone’s bids, which the US company deemed undervalued. Danone retains its focus on plant-based and dairy products in the US market.